2023-08-12 06:43:08
The rouble Russian has seen notable fluctuations lately. However, the latest actions taken by the central bank have caused the currency to stabilize noticeably once morest its international counterparts, notably the US dollar. Last week, the ruble reached an alarming point, being at its lowest level since March 2022 once morest the dollar. This fall was mainly due to the increased demand for foreign currencies and an insufficient supply. Faced with this situation, thehe Russian Central Bank stepped in to take game-changing measures.
One of the major interventions was the decision to stop foreign exchange purchases by the Ministry of Finance. Such an action had as a direct consequence a significant increase in the net supply of foreign currencies on the market, from 500 million rubles per day to 2.3 billion rubles. Although this increase is notable, some analysts believe that even more vigorous measures would be necessary to really stabilize the ruble.
Signs of strength
This central bank intervention comes at a time when the Russian economy is also showing other signs of strength. Brent crude oil, a global barometer of Russia’s top export, rose. Moreover, Russian stock indices, such as the RTS index and the MOEX index, also show a positive trend. Although Russia has been facing monetary challenges lately, recent interventions by its central bank show a clear desire to stabilize and strengthen the rouble. It will be interesting to watch the next steps of this major global economy to see how the ruble will perform going forward.
European companies are losing big bucks
The massive withdrawal of European companies from Russia has significant economic consequences. Many firms, including Danone, suffer major losses due to unforeseen costs, including decisions such as the nationalization of their subsidiaries by the Russian authorities. According to a survey by the Financial Times, the energy, finance and automotive sectors are the hardest hit, with cumulative losses of several billion euros. The situation might worsen as many European companies remain active in Russia and might face unexpected additional costs.
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